Location-based credit provision system

Abstract

A method for providing credit to a user includes receiving user data associated with the user and location data associated with a location from a user device of the user over a network. User spending data for the user at the location is then retrieved from a database using the user data and the location data, and the user spending data is used to determine a location-based credit score for the user at the location. In some embodiments, merchant data for the location may also be retrieved to determine whether the location is a trusted merchant location and / or to help determine the location-based credit score. A location-based credit line for the user at the location is created in a database, and a location-based credit offer is sent to the user device over the network that includes an indication of the location-based credit line for the user at the location.

Description

BACKGROUND[0001]1. Field of the Invention[0002]The present invention generally relates to online and / or mobile payments and more particularly to a location-based credit provision system.[0003]2. Related Art[0004]More and more consumers are purchasing items and services over electronic networks such as, for example, the Internet. Consumers routinely purchase products and services from merchants and individuals alike. The transactions may take place directly between a conventional or on-line merchant or retailer and the consumer, and payment is typically made by entering credit card or other financial information. Transactions may also take place with the aid of an on-line or mobile payment service provider such as, for example, PayPal, Inc. of San Jose, Calif. Such payment service providers can make transactions easier and safer for the parties involved. Purchasing with the assistance of a payment service provider from the convenience of virtually anywhere using a mobile device is on...

AI Technical Summary

Benefits of technology

The patent describes a method that uses information about a user's spending behavior in a particular location to create a credit line for the user based on that behavior. This could include information about the user's previous purchases, their account history, and the behavior of nearby merchants. The method also allows the user to be offered insurance on their purchases from the merchants. The technical effect of this is that users can be extended credit based on their previous spending behavior in a specific location, and that merchants can be insured based on their behavior to encourage more sales.

Problems solved by technology

Such conventional credit provision systems and methods are limited to extending credit based on the above detailed consumer-specific attributes, and thus often do not extend credit in situations where the risk associated with extending that credit may be relatively low.

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